This free pension calculator helps to calculate the amount that both employee & employer are to contribute into retirement pension scheme in favour of the employee.
According to Nigeria Pension Commission, employee is expected to contribute 8% of the sum of his basic salary, housing allowance, and transport allowance.
The employer however is required to contribute minimum of 10% of the same sum. These are mathematically expressed below.
Employee Pension Contribution = (Basic Salary + Housing Allowance + Transport Allowance) * 8 / 100
Employer Pension Contribution = (Basic Salary + Housing Allowance + Transport Allowance) * 10 / 100
Total Pension Contribution = Employee Pension Contribution + Employer Pension Contribution
Note well that the amount contributed by employee is tax free.
While access to the fund is not allowed until retirement, there are valid grounds for withdrawals from the retirement saving account before retirement. One of such reasons is when out of employment for a period of 4 months. See the links below for other reasons.
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